On 17 March 2010, the Indonesian Ministry of Finance issued regulation 62/PMK.011/2010 abolishing the 75% luxury tax on alcoholic beverages and replacing it with new excise tax levels.

According to the new regulations, beverages containing ethyl alcohol up to 5% will be universally taxed with 11'000 IDR/litre (USD 1.2). Prior to the new regime, these beverages were taxed depending on whether they were produced domestically (3'500 IDR/litre) or imported (5'000 IDR/litre).

A similar excise tax discrimination was maintained under the new regulation for alcohols with 5-20% ethyl alcohol content. With the new regulation, the beverages concerned were taxed 40'000 IDR/litre if imported and 30'000 IDR/litre if domestically produced. Under the prior regime, the tax for domestically produced bottles was 5'000 IDR/litre (5-15% content) and 10'000 IDR/litre (15-20% content), whereas imported ones were subject to an excise tax of 20'000 IDR/litre (5-15% content) and 30'000 IDR/litre (15-20%).

The excise tax discrimination for beverages with an ethyl alcohol content of over 20% was also kept and the rates increased for domestic products from 26'000 IDR/litre to 75'000 IDR/litre and for imported ones from 50'000 IDR/litre to 130'000 IDR/litre.

The regulation became effective on 1 April 2010 and was revoked when regulation 207/PMK.011/2013 came into force on 31 December 2013 (cf. Related Measures).

According to UN Comtrade, Indonesia did not have bilateral trade worth over 1 million USD with any single country in the year prior to the implementation of this measure, i.e. in 2009. Hence, no affected trading partner has been listed.